Four financial execs from West Hartford-based Filomeno Wealth Management have jumped ship to nearby rival Connecticut Wealth Management in Farmington, as competition in the booming investment business continues to heat up.
Michael Tedone, a former principal and shareholder at Filomeno & Company, is now a partner at Connecticut Wealth Management. Also making the move are Kathleen Christensen, Elizabeth DeBassio and Kimberly Lockwood. Collectively they are bringing with them $120 million in client assets to add to Connecticut Wealth Management’s war chest, officials say.
The addition is a coup for Connecticut Wealth Management, which has experienced aggressive growth since forming in 2010. The company now has $410 million in client assets and nine advisors on staff, making it one of the largest independent, fee-based wealth management firms in Greater Hartford, officials say.
“Mike’s team is remarkably similar to how we operate and that is especially rare in this industry,” said Kevin Leahy, CEO and president of Connecticut Wealth Management. “They have the same approach to the business that we have, which is to provide transparent, honest financial information that benefits the client.”
Connecticut Wealth Management, which currently has about 270 clients, formed in 2010 when a group of advisors and associates split from the wealth advisory unit of accounting firm Kostin, Ruffkess & Co. Kostin, Ruffkess in Farmington has since been bought out by another accounting firm.
Connecticut Wealth Management specializes in financial planning, asset management and investment consultations. Typical customers include business owners, entrepreneurs, and medical professionals. The firm provides clients with financial advice through a fee-based structure.
Tedone, who specializes in wealth management and tax planning services, said he decided to make the move because he can now offer his clients a greater scope of services.
Tedone said he was also drawn to Connecticut Wealth Management for its people and the company culture.
“Those two go hand in hand,” he said. “Many firms talk about delivering an extraordinary client experience, but are not willing to invest in the people and technology necessary to deliver. At Connecticut Wealth Management, all the essential tools are in place to deliver on the commitment.”
Another unique selling point, Tedone said, is the pay structure. Unlike many investment firms that base employee pay on commissions or product sales, Connecticut Wealth Management has all of its advisors working on a salary.
That has a major impact, officials say, on the corporate culture and the way advisors treat and interact with clients because advisors don’t feel pressure to sell a product to make money.
“There’s a huge demand for independent advisory firms that can give conflict-free investment services,” said Leahy. “Independence, objectivity, and lack of a sales culture are rare in our industry and are what we feel sets Connecticut Wealth Management apart from our competition.”
Filomeno Wealth Management did not return a call seeking comment.
Greater Hartford’s wealth management industry is very competitive with many players vying for a piece of the action. Competition for clients in the ritzier suburbs surrounding Hartford — Avon, West Hartford, Farmington and Glastonbury — can be intense.
Leahy, who started Connecticut Wealth Management three years ago, said his focus has been on growing a firm that provides clients with individualized attention.
While big banks bolster their wealth management operations to draw in more customers by offering a variety of financial products, Connecticut Wealth Management is focusing its resources solely on developing long-term relationships, he said.
To do that, the firm must offer individualized attention to clients, as well as a continuity of services, so clients aren’t talking to a different advisor every time they need to make important decisions about their financial future.
To maintain that approach, Leahy said he is being careful about not growing the firm to rapidly.
“We’re very careful about how we grow our business, both with clients and advisors. We want to grow naturally,” said Leahy. “We don’t want to be a huge firm that can’t give clients the superior individualized attention they deserve.”
